How to start a carpet cleaning business

Water damage restoration is a separate business with its own training and insurance demands. Start with cleaning and add it on purpose, not by accident.

Carpet cleaning usually needs a general business license from your city or county and no trade license. The IICRC runs certifications for cleaning, inspection and restoration technicians. They are voluntary, but many customers and insurers recognize them, and the training covers fibers, chemistry and drying.

The SBA lists the launch steps in this order: pick a location, choose a structure, choose a name, register, get federal and state tax ID numbers, apply for licenses and permits, open a business bank account, and get insurance. For a carpet cleaning business working out of a truck, the location is usually your home address and the area you will serve.

• Structure. A sole proprietorship is the simplest. An LLC keeps the business separate on paper. Ask an accountant which fits your state and your plans.
• Tax ID. The IRS gives out an employer identification number (EIN) online, and says you never have to pay a fee for one. Websites that charge for an EIN are not the IRS.
• Self-employment tax. The IRS lists the self-employment tax rate as 15.3%: 12.4% for Social Security and 2.9% for Medicare. Income tax comes on top, so set money aside from every job.
• Bank account. Open it before the first payment lands, so every dollar in and out is easy to find at tax time.

Your name goes on the truck, the invoices, the Google profile and the yard signs, so pick it once. The free carpet cleaning name generator gives 36 ideas for your town and style, each with a domain idea, and lists the checks to run before you commit: your state's business name search, a federal trademark search and the domain itself.

The SBA describes general liability insurance as cover for financial loss from bodily injury, property damage, medical expenses and defending lawsuits. It says businesses with employees are required to carry workers' compensation, unemployment and disability insurance, and some states ask for more.

Water damage, a stain that gets worse, and wet floors are the claims to plan for. Ask your agent about general liability, commercial auto for the van or truck-mount, and cover for the equipment.

No total here on purpose. What you spend depends on what you already own, new or used, and how much work you plan to take on. Price your own list with a local supplier, then put the numbers in the startup cost table of the free business plan generator, which adds them up for you.

• A portable extractor or a truck-mounted unit
• Wands, hoses and an upholstery tool
• Pre-spray sprayers, a carpet rake and spotting chemicals
• Air movers to speed drying
• Floor protection, corner guards and furniture pads

The extraction equipment decides the total. A truck-mount means the vehicle and unit together are most of your spend.

Price by room or by square foot, with set prices for stairs, heavy stains, pet treatment and upholstery. Set a minimum per visit. The free labor rate calculator gives your hourly cost, and the break-even calculator shows how many jobs a month cover your equipment payment. Publish a clear room size limit so "a room" means the same to you and the customer.

• Property managers. Every move-out needs clean carpet.
• Your past customers. Koira reminds them when it has been a year.
• A price on your website. Instant quotes answer "how much for three rooms".
• Reviews with photos. Before and after shots sell this trade.

Invoice as you pack up and take payment at the door. For property managers, send monthly invoices. Then ask for the review.

Add upholstery, rugs and tile to raise each ticket, and commercial accounts for weekday work. Train every helper on chemistry and drying before they work alone.